ACG - Agency Consulting Group


A national monthly newsletter for agency principals dedicated to agency management topic



Compensation based on New and Renewal Commission Rates

NOTE: Enter data to outlined cells only. All other cells contain formulas and are locked

Producer Name: Producer Name Enter Producer Name

Compensation Desired 60000 Producer's desired total annual compensation

Initial Salary/Draw 50000 Salary or Draw offered by the agency

Prior Year Total Gross Commission 150000 Combined New and Renewal Commissions for Prior Year (renewable)

Renewal Commission Rate 25%

Renewal Commission Expectation 90% 135000 Expected Annual Commissions/Fees from Renewals at a projected retention rate

Comm. Earned on NB or Growth Production 40.0% Producer Commission for production in excess of Baseline

Comm Req to Base Comp 40625 Commission Production required to satisfy initial salary/draw - MINIMUM COMMISSION SALES GOAL

Comm Req to Desired Comp 65625 Commission Production required to satisfy desired compensation total- TARGET COMMISSION SALES GOAL

Total Production Required 65625 Total Commission to be written in order for producer to achieve Target Sales Goal (desired compensation level)

Average Expected Account Size 1000 Target account size(Commission)

Required Annual Number of Sales 66 Line 10 divided by line 11

Expected Proposal to Sales Rate 50.0% Percentage of proposals expected to be sold

Required Annual Number Proposals 131 Line 8 divided by line 9

Exepected Sales Call to Proposal Rate 33% Enter the total times the Producer is expected to call on an avg prospect before reaching the Proposal stage in L35 5

Or enter the % expected Sales Call to Proposal (quote) Rate in cell G35.

Required Number of Sales Calls 398 Enter the total times the Producer is expected to call on an average prospect before reaching the Proposal stage

Weekly Targets: Line 14 divided by line 15

Sales Calls 8

Proposals 3

Sales 1

Weekly Annualized Premium 10096 13.0% Agency average comm rate

Weekly Annualized Commission 1313 for type of business to be sold

at avg comm rate of by producer

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Agency Consulting Group